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Let's say an investor has a capital of 1 0 0 0 0 0 0 euros and is considering whether it is beneficial for him
Let's say an investor has a capital of euros and is considering whether it is beneficial for him to invest for months in euros domestic currency or sterling foreign currency The current exchange rate is sterling euros. The month interest rate of the euro on an annual basis is The month interest rate for sterling on an annual basis is The month forward rate is sterling euros. What should the investor decide?
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